ENERGY AND EMISSIONS - orocobre.com
Transcript of ENERGY AND EMISSIONS - orocobre.com
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industry,innovation andinfrastructure
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M A N A G E M E N TA P P R O A C H
D I S C L O S U R E
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Energy and Emissions*
Strategic significance
Orocobre’s sustainability strategy is focused on three
aspects: Safe and sustainable operations, thriving
communities, and responsible products that promote
the transition to a net zero carbon future.
By enhancing the energy efficiency of our operations
(i.e. ensuring maximum production output for every unit
of energy consumed), Orocobre not only minimises
impact on the environment, but also reduces
operational expenses while maximising production
figures and associated revenues.
As a lithium carbonate producer facilitating the global
transition to a clean energy future, it is essential that we
listen to our stakeholders. Increasingly, our customers
are requiring low carbon products and our investors
want to see transparency about our exposure to
transitionary risks and opportunities associated with
climate change. Orocobre has been working on
improving measurement of greenhouse gases for both
the Olaroz Lithium Facility and Borax Argentina. This is
resulting in the targeted implementation of energy
efficiency programs and reductions in the emission
intensity of our production processes.
Impact boundary
This management approach disclosure refers to the
activities of both Sales de Jujuy (Olaroz Lithium Facility)
and Borax Argentina (Borax Argentina).
Orocobre’s commitment to energy and emissions
reduction extends across the Company’s entire value
chain. Our primary focus is on reducing the energy and
emissions associated with our operations as this is
where the impact is greatest.
Orocobre acknowledges the opportunities to also
monitor and reduce indirect energy consumption and
emissions (e.g. corporate activities, transport and
distribution of materials, products and personnel and
other emissions associated with our supply chain). We
are progressively expanding our energy and emissions
reporting boundary over time to include these additional
sources.
Related Performance Data Environment
Related ManagementApproach Disclosures
Climate
Related GRI Contents
Related SustainableDevelopment Goals
SDG 9
103-1; 103-2; 103-3
Other related documents Sustainable Development Policy; Environmental Policy
Related Material topics + Environmental Management+ Climate change Risk
Future Commitments + Continue implementation of our TCFD roadmap+ Continue implementing metrics and indicators to define efficiency goals across our operations.+ Incorporate our environmental data for Olaroz Lithium Facility and Borax Argentina in Intelex with monthly entry of information provided by respective data-owners, to increase information consistency and quality.
(*) This Document is part of Orocobre's Sustainability Report and should be understood as part of itslef.Understanding Sales de Jujuy as Sales de Jujuy S.A., SDJ or Olaroz Lithium Facility and Borax Argentina as Borax Argentina S.A or BRX.
https://www.un.org/sustainabledevelopment/infrastructure/
https://www.orocobre.com/wp/?mdocs-file=7259
https://www.orocobre.com/wp/?mdocs-file=7239
https://www.orocobre.com/wp/?mdocs-file=4986 https://www.orocobre.com/wp/?mdocs-file=4779
Management approach
As part of Orocobre’s commitment to advancing the Sustainable Development Goals and in line with SDG 9: Industry,
Innovation and Infrastructure, the Company is constantly reviewing opportunities to 1) upgrade infrastructure and
processes to enhance resource-use efficiency and 2) adopt clean and environmentally sound technologies and
processes.
Policies that demonstrate the Company’s commitment to energy and emissions reduction include:
• Environmental Policy
• Sustainable Development Policyclimateaction13
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02
Management Systems
Orocobre’s operations have an ISO certified
Environmental Management System (ISO14001), for
both the Olaroz Lithium Facility and Borax Argentina,
which provides a solid foundation for the management
of energy and environmental performance.
The Company’s continuous improvement program
allows all employees and site-based operators to
propose opportunities for improved performance across
all aspects of its operations. This enables the Company
to regularly review emission reduction opportunities.
Monitoring and Reporting
The first detailed emissions inventory and specific
methodology for the Olaroz Lithium Facility was defined
in FY18. The FY18 emissions inventory constitutes the
baseline year for energy and emissions performance.
The first emissions inventory for Borax Argentina, was
completed in FY20, providing a baseline for carbon
dioxide equivalent emissions.
We evaluate the effectiveness of our management
approach through regular monitoring and reporting of
representative data and metrics, tracking progress
against predefined objectives and targets. We fully
comply with environmental laws aimed at controlling
generated emissions. Internal data and reporting
processes include daily operational updates, fuel
consumption, weekly operational performance reviews,
and monthly reporting on progress against operational
targets.
Orocobre monitors and reports on climate-related
indicators annually in its Sustainability Report and in
investor surveys such as the CDP Climate Survey and the
S&P Global Corporate Sustainability Assessment (CSA).
Up until FY19, Orocobre had only provided information
related to the Olaroz Lithium Facility in the
Sustainability Report. From FY20, we have expanded
this scope to also include Borax Argentina. Data
reported includes the total tonnes of carbon dioxide
equivalent emissions under Scopes 1, 2 and (selected)
scope 3.
Our most recent performance against these and other
environmental metrics are included in the Orocobre
Environment Performance Data, available on our
website.
Responsibility
At an operational level, responsibility for energy and
emissions performance – including the evaluation and
implementation of reduction initiatives – sits with the
Chief Operating Officer.
The Risk Management Manager monitors performance
and works in close collaboration with departments of
greatest impact (including the Process, Logistics and
Supply Chain teams) to identify and evaluate
opportunities for performance improvement.
Engineering and Projects areas are also involved when
working on the design and implementation of new
technologies.
Accountability
With targets now defined for energy and emissions
performance at the Olaroz Lithium Facility, the
Company is integrating KPIs into the performance
evaluation process for specific managers and employees
at an operational level, incorporating sustainability
concepts to the operating sector goals. This work is
ongoing for Borax Argentina.
Orocobre’s Executive performance assessments are also
being reviewed to incorporate energy and emissions
related performance goals into their short term and
long-term incentive criteria.
industry,innovation andinfrastructure
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https://www.un.org/sustainabledevelopment/infrastructure/
https://www.un.org/sustainabledevelopment/infrastructure/
https://www.orocobre.com/wp/?mdocs-file=4986
https://www.orocobre.com/wp/?mdocs-file=4779
https://www.orocobre.com/wp-content/uploads/2021/02/OROCOBRE-Sustainability-Report-2020_Web_Final.pdf
https://www.spglobal.com/esg/csa/djsi-csa-annual-review-2020
https://www.orocobre.com/wp/?mdocs-file=7259
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FY20 update
SALES DE JUJUY (Olaroz Lithium Facility)
The Olaroz Lithium Facility increased its focus on
operational efficiency in FY20, particularly regarding
fuel consumption for energy generation. This is an
important component in operational costs so
opportunities were sought to reduce consumption both
in the short and long term.
A key challenge was restructuring data collection and
reporting processes to ensure energy and emissions
information related to operation and expansion activity
could be clearly delineated. The intensity emissions data
is broken down into total intensity and operational
intensity, making it possible to compare information
related to emissions from industrial processes year on
year. Managing this KPI becomes essential to ongoing
tracking once the second expansion stage is complete
and to generate historical data that will be useful to
implement more detailed and effective emission
reduction programs.
Interruptions in production due to the COVID-19
pandemic contributed to a slight decrease in overall
energy consumption during the year. However, the
continued improvement in operational emissions
intensity during FY20 is evidence that our initiatives to
improve efficiency are being effective.
Only indicators which could be clearly delineated as
being associated with either operation or construction
activities (process heat, heavy vehicle fuel consumption,
and stationary diesel consumption in new construction
zones on site) were used to determine the difference
between operations and expansion performance
metrics.
New information sources included this year have
resulted in an improved emissions inventory at the
Olaroz Lithium Facility as compared to the previous
year. Relevant emission factors were also revised and
updated in accordance with Argentina’s energy matrix,
thus complying with international guidelines on
greenhouse gas emissions.
Air quality monitoring is performed on a quarterly basis
and includes, but is not limited to, the pollutants set out
in Law No. 24.585, supported by provincial Law No.
5.063. Based on outcome assessments it can be
concluded that the emissions are compliant with
applicable air quality regulations. This information is an
integral part of the biennial update of the Environmental
Impact Report for the Olaroz Lithium Facility.
Given increased demand from Orocobre’s direct and
indirect customers for information regarding the carbon
intensity of operations, we will continue focusing our
efforts on increasing our energy and emissions
efficiency and monitoring and reporting on progress.
Preliminary targets have been set for improving energy
and emissions intensity at the Olaroz Lithium Facility.
These are included in the Climate Management Approach
disclosure. For information on our annual performance,
see the Environment Performance Data available on the
Orocobre website.
BORAX ARGENTINA
Energy use and emissions data for the Borax Argentina
operations was incorporated in the sustainability
reporting for the first time this year. The main sources of
GHG emissions for Borax Argentina are scope 1
emissions associated with Intermediate Fuel Oil (“IFO”)
used at our Tincalayu mine and plant. Other scope 1
emissions sources are the natural gas used at Campo
Quijano and Diesel used at Sijes and Tincalayu.
Development of the GHG inventory for Borax Argentina
has highlighted opportunities for reducing emissions.
These include installation of a domestic Effluent
Treatment Plant (ETP) powered with photovoltaic
renewable energy at Sijes field. This would result in
reduced energy costs and be more aligned with
Orocobre’s corporate strategy.
Other potential initiatives include the construction of a
gas pipeline running from the existing pipeline to the
west to the Tincalayu mine and processing plant. This
would replace the current use of IFO and diesel fuel at
the plant. Although natural gas is derived from a
non-renewable resource, the emissions resulting from
the use of this fuel are significantly lower than those
resulting from the use of IFO and diesel. IFO
contributes over 50% of the carbon dioxide equivalent
emissions, so managing this key issue in the coming
years is essential to reducing overall emissions.
Borax Argentina’s operational emissions intensity for
FY20 is 0.44 tCO2e/tonne of total product. There are
not currently any expansion activities associated with
Borax Argentina so all emissions reported are
operational. For calculating the total tonnes of product,
all products of boric acid, borax refined and fused
products, and mineral concentrates have been included.
Power consumption within Scope 2 comprises both the
electricity consumed in the administrative office located
in a building separate from the production plant and the
electricity used in the plant itself. Differentiating the
consumption between the offices and the plant by
installing another electricity meter is an opportunity for
improvement.
No emissions reduction targets have been set at this
time for Borax Argentina as we focus on establishing
the baseline and improving reporting processes.
For information on energy and emissions performance,
see Environmental Performance Data.
https://www.orocobre.com/wp/?mdocs-file=7239
https://www.orocobre.com/wp/?mdocs-file=7259
https://www.orocobre.com/wp/?mdocs-file=7259